The city received approximately $379,000 in gross receipts tax revenue in October. The city needs at least $435,000 per month to sustain its current budget.

The city’s gross receipts revenue has mostly been down since the start of the new fiscal year in July. In September, the gross receipts revenue was down around $30,000. The month of August was above projections by $33,000, which helped ease losses.

The city council will hold a special meeting on Tuesday to discuss ways to further reduce spending by prioritizing projects and services.

At a meeting on October 8 with the mayor and city council, city employees asked the city council to develop a clearer plan for addressing revenue shortfalls.

Employees also asked for the city to look at ways of increasing revenue, as well as offering guidance to employees on what they can do to help reduce spending.

With one of the primary sources of revenue coming in the form of business gross receipts, the city continues to see the loss of businesses in a continuing economic recession, shown most starkly by the number of newly vacant properties along Main Street and its adjoining streets in recent months.

Even while businesses have closed, a number of projects continue around town, some funded by the national stimulus and other government resources.

Major construction is mostly in new and renovated apartments on Aragon Road and South Main Street. Another major renovation of a medical office is taking place on Christopher Road.

A contractor is also continuing work on the $3-million Reinken Avenue pedestrian overpass, with construction continuing through early December.

Camino del Llano is also still under construction at least through the end of the year, with a possible extension of construction by two months because of problems relocating fiber optic lines.

Those projects are bringing in some revenue for the city. Other sources of revenue include fees and fines for things like court costs and city code violations. The city has not discussed any effort to increase the amount of revenue received in those areas.

The issue has been contentious over the past couple of months, as the Valencia County Commission demanded answers from the Federal Emergency Management Agency (FEMA) about why the agency is including more Valencia County homes in the designated floodplain this year.

The county commission went so far as to arrange to have FEMA officials out of Texas fly to New Mexico to answer questions about the flood map at a county commission meeting. The issue even caught the attention of United States Rep. Harry Teague, who held a special forum to discuss it with his constituents.

Inclusion of a home in the floodplain means the homeowner will have to buy flood insurance. In many instances, however, mortgage lenders require flood insurance anyway, and sometimes at three times the cost of what the homeowner will pay if included on the flood maps.

High-risk areas in the floodplain pay more than low-risk areas.

Medina said he couldn’t vote to force residents not paying for flood insurance to start paying for flood insurance.

Commissioner Ron Gentry, who was one of four votes to approve the new flood maps, said the county commission was forced to vote to approve it.

Had the commission not approved the flood maps, it would mean many homeowners would have to continue buying flood insurance anyway, just at a higher rate. That would penalize homeowners already in the floodplain, Gentry said.

Disapproval also could have increased property development costs because new mortgages would have the added amount tacked on, which some commissioners feared would harm growth.

The city needs to receive at least $435,000 each month to afford the bills. The new budget is based an expectation of $435,000 in gross receipts tax revenue each month.

The city has also been notified that the New Mexico Department of Finance and Administration (DFA) has given final approval to the city’s current fiscal year budget.

In its approval letter, DFA cautioned the city that the budget is tight.

“Your projected cash balance of $3,142 above our 1/12th reserve requirement is extremely low. Despite your diligent efforts in coming within budget, careful monitoring and aggressive revenue collections is recommended to avoid financial problems in the future,” the letter reads.

They will have free entertainment all weekend that will include Bandalegre from Pecos on Friday evening, Gonzalo and his band on Saturday evening, and New Mexico’s Band of the Year, Cuarenta Y Cinco, from Española on Sunday.

First Prize in our annual raffle will be $5000.00, Second Prize will be $2000.00, Third Prize will be $700.00, Fourth Prize will be a recliner.

Promotional Carnival Wrist Bands will cost $15.00 for unlimited rides on Friday night only.

Booth Vendors welcome. Call 864-8043 or 615-5713 for more information.

The vote was 3-0. Councilor Wayne Gallegos was absent.

The budget anticipates general fund expenditures of more than $4.9 million. It anticipates general fund revenues of almost $4.3 million. The difference is made up through transfers from other revenue sources.

The general fund balance at the end of the 2010-2011 fiscal year, assuming gross receipts revenues come in as projected, is just above $3,000.

With the budget so tight, the city is continuing to operate with extreme caution.

While there has been discussion of additional cuts because of weak gross receipts, no decisions have been made.

According to the city’s finance director, Michael Steininger, the city can look at cutting capital projects, like the roof repair for the municipal court, or budgeted purchases, like needed equipment, before further affecting staff.

Founded in 1997, FastDitch Inc. manufactures open-channel, thermoplastic water flow systems used for things like irrigation, water diversion, storm water control and other uses.

The product, called SmartDitch, has been used in places like Acoma Pueblo, New Mexico, and Durango, Colorado.

The company is owned by a family of engineers and farmers from Vallecitos, New Mexico.

Maria Montoya, who works with FastDitch, presented information about the company at Monday night’s city council meeting, telling the city council she hoped to company can build in Belen.

She said the 30,000-square foot facility might be constructed in the Rio Grande Industrial Park, if the company can get financing.

The purpose of the facility is to begin manufacturing the company’s next generation of water flow systems, made from 95-percent recycled plastic. She said it would house the Southwest’s largest injection molding machine.

Montoya estimated initial job creation at 40, from technical to administrative, and estimated the company could be up and running in Belen within a year and a half.

The city is working with the company to streamline planning and construction of the facility.

The city is working in collaboration with the Albuquerque-based nonprofit community development group.

The two-story La Hacienda Apartments have been the site of criminal activity and a problem for neighbors.

The apartment building was foreclosed on by Charter Bank in late 2009, which gave YES Housing the opportunity to begin to negotiate the purchase.

The project will use neighborhood stabilization funds from the federal government’s American Recovery and Reinvestment Act.

According to YES Housing, the property should be acquired by September and will be under the ownership of YES Housing for at least 20 years.

YES Housing provides a process for tenant screening, selecting tenants with good credit and in good standing at their previous residences.